In 2016, there were an estimated 11.3 million women-owned companies in the United States — a 45 percent increase since 2007, based on The 2016 Condition of Women-Owned Firms Report from American Express. This percentage growth surpassed the national average of company growth during precisely the exact same time period by five occasions. Additionally, it illustrated that which we already understand: Women entrepreneurs have a huge influence on the small-business scene nationally.
However to continue to be aggressive and develop, these entrepreneurs need to find financing for their own ventures. And, strangely, girls entrepreneurs are being turned off by banks to get small-business loans. Happily they have other alternatives, given the growth of technology-driven monetary lending resources, for example online loans, peer loans as well as crowdfunding.
Then you will find government grants. While not widely understood or used, these grants are another excellent alternative for women seeking additional funds for their business ventures. They simply require a bit more work.
Business owners frequently turn to grants since they are not needed to pay back them; basically, you may look at grants because “free money,” but they include stipulations. Additionally, studying and understanding the distribution process can be complicated.
To begin with, you need to investigate and discover a grant for which you are qualified. Then you need to comprehend the rigorous application and compliance instructions you have to meet to qualify. You have to spend time and energy into the lengthy application process, and wait for acceptance. You need to compete with other companies for the exact same pool of cash. And lastly, if you are given a grant, you have to report on the way you used it. In brief, you have to get all of your ducks in a row, upfront and then.
Finding state and federal grants
Many small business owners believe national grants are only a click away. We have all seen the advertisements promoting free federal cash to begin a company, however this is a massive misconception. When there are federal grants offered in the fields of health research, science, technology and education advancement, no such grants exist for women-owned companies. You might discover grants financing projects that literally empower women, however such funding can be set aside for all nonprofit businesses, businesses that are not for-profit.When exploring grants especially for a woman-owned company, begin at the country level. The majority of states provide grants for women-owned companies in certain capacity. Each nation site includes a business section where you are able to find funding and grant opportunities for girls and minority-owned companies.
The MBDA is a bureau of the U.S. Department of Commerce that aids minorities in creating and expanding their companies. On its website, you are able to study grants and get links to state agencies which operate with women-owned companies for financing opportunities. The MBDA provides a listing of state agencies.
Private grants for girls
To assist in your search, here is some advice on some private grants for girls:
Five grants are given yearly. The companies have to be 100 percent women-owned and also have heritage principles of social awareness, innovation and sustainability, and be prepared to proceed into another phase of growth.
Applicants are invited to discuss their dreams to be given a part of the $100,000 given in temrs of grants. Part of the estimating involves the voting in public for finalists, so the participants can might as well promote their companies while gaining votes.
The Idea Café is a free gateway which hosts distinct grants on its website. 1 grant is that the Small Business Grant, which awards a $1,000 grand prize to some company with the most revolutionary idea. Visitors to this site vote to your winner.
The top 3 finalists divide $70,000 in prize for submitting their ideas which have an effect on the lifestyles of girls.
Eleven different national agencies take part in this awards-based program, which incentivizes and empowers small businesses to explore their technological capacity.
The STTR program reserves a particular percentage of federal research and development funding to offer financing opportunities to small companies.
This Utah-based lender’s grant yearly awards $3,000 over six distinct categories, including company.
When you locate a financing opportunity, there are numerous steps necessary to employ. Here are a Couple of tips to help you:
Produce a listing for all the essential documents.
Obey the rules. Grant applications can be quite technical. It would not hurt to get a second (or perhaps third) pair of eyes review the program to make sure you’ve supplied all necessary documents. Because the application process can sometimes be lengthy, it does not hurt to have a leap on things.If you discover the grant application process too long or daunting, online lender Kabbage is dedicated to encouraging small-business loans for women business owners. Since its application method is totally automatic and on line, Kabbage can easily offer small-business loans around $100,000. It utilizes easy, purposeful revenue data from the company to approve your loan — not complicated documentation which requires extensive time to collect.